Financial statement analysis - Research Paper Example

Download file to see previous pages... NCT&H has taken up some of the important projects on the hospitality industry, which are Hotel Le Bristol, Grand Millennium, Saadiyat Island and Nareel Island. The project of Hotel Le Bristol is the most stylish of its kind, based in Paris it was voted for as the best hotel of the year 2011. The Grand Millennium property of NCT&H was famous for its food and beverage outlet having grand ballroom which has the capacity of 1000 guests and is expected to open in the second quarter of 2012. Saadiyat Island is a joint venture of NCT&H and the UAE’s capital’s TDIC (Tourism Development and Investment). The plan is to set up a low rise hotel with 250 rooms on the shores of Saadiyat Beach district. Lastly, the project of Nareel Island is also a joint venture but with ALDAR Properties of PJSC developing premium gate and the residential property with features like health and fitness club, spa and restaurants. It will even provide Private Marina for the VIP’s along with hotel excursions. ...
Introduction From the very inception of the economic environment it is going through massive changes. In comparison to the previous times economic environment has become more lenient and open towards the private participation of the economic activities related to trade and capital flow (Pailwar, n.d., p. xi). The study of the company’s annual report gives us the idea that NCT&H is mainly affected by the economic factor which are under constant fluctuation for the interest rate risk of the company which the company is avoiding by the entering into swap trading through the banks. But the company has faced the economic downturn like all other industries during the year of 2008-09. This was the time when the economy went into the sudden depression creating unrest for all the industries of the economy. The economic depression is the main reason behind the low spending capacity of the common mass which again was lower than the NCT&H business for a long period of time (Pailwar, 2009, pp. 1-10). Industry Environment and Industry Risks There are a few factors that are responsible for affecting the environment of the hospitality and tourism industry and are also the reason of its probable risks. The factors being the weather, political conditions, economic conditions and globalisation may be the reason for making or breaking the business of a hospitality and tourism industry. As far as weather is concerned is the hotel is situated in place where snow storming is prevalent the charges may get doubled as skiing can be enjoyed along with the stay. But when it comes to hotels in tropical countries as is NCT&H if the weather turns out to be windy the hotel might lose business as well. Even the natural disasters can affect the hotel ...Download file to see next pagesRead More